First-time buyers warned that options are decreasing

The recent news that all the 100% mortgage products have been removed from the market by lenders has been met with disappointment by moneysupermarket.com.

Northern Rock, Alliance & Leicester, Birmingham Midshires and Abbey have all withdrawn their 100% mortgage deals in recent weeks.

According to Louise Cuming, Head of Mortgages at moneysupermarket.com, the decline of this type of mortgage means first-time buyers have had yet another option to get onto the property market disappear.

'It's yet another door closed for first-time buyers, which is making it harder and harder to get new lifeblood into the mortgage industry,' she warned.

Ms Cuming stated that 100% mortgages 'were good products' and 'an excellent way to get onto the housing ladder.'

However, she added that she does not expect such mortgage deals to be available again in the next 12 months and anyone entering such a financial agreement should be aware that it may take a few years to build up any equity.